Firms need to be especially vigilant to comply with Russian sanctions. That export control warning was sounded loudly this week, amid a growing number of breaches and circumvention attempts.
Elsewhere, new figures from the Office for National Statistics (ONS) revealed a sharp rise in the UK’s goods trade deficit in 2025, while the Chartered Institute of Export & International Trade announced the opening of its flagship trade awards programme for 2026.
The big picture: The challenge of successfully implementing sanctions against Russia was once again highlighted this week.
First, a Guardian investigation found that a government-issued export licence could inadvertently facilitate dual-use goods reaching Russia.
UK firm Cygnet Texkimp has been granted an export licence to send dual-use carbon fibre manufacturing equipment to Armenian company Rydena. However, the latter was set up in 2024, after the beginning of the war in Ukraine, by former executives of a firm that has emerged as key military supplier to Russia.
Cygnet told the Guardian that it “undertook detailed end-user checks required by export controls and received full export approval” from the government, while Rydena has said that it doesn’t do business with Russia.
Chartered Institute of Export & International Trade Export Controls Practice lead Daniela Turiccki said that “given the seriousness of Putin’s illegal invasion of Ukraine, businesses should be extra careful about who they are selling to”.
“This isn’t just a matter of compliance, but it is a question of not contributing to the atrocities that the Kremlin is instigating in Ukraine, and an issue of national security for the UK.”
The warning preceded a Reuters report that found mass transshipment of European and Japanese cars to Russia via China, a major ally of the sanctioned nation.
According to the news outlet, tens of thousands of cars – from brands including Mazda and Toyota to luxury German brands – are reaching Russia through ‘grey-market schemes’ comprised of Chinese intermediaries.
Good week/bad week: Good news for several key European FTAs, which made progress towards entering into force this week, as the UK-India agreement was debated in the House of Commons, while the EU’s US pact was signed off by the European Parliament.
UK MPs discussing the India deal highlighted the potential deflationary impact of cheaper Indian imports and sizeable tariff reductions for UK exporters in sectors like alcohol and cosmetics.
Conservative MP Andrew Griffiths cited the Chartered Institute’s own submission to the House of Lord’s International Agreements Committee on the deal, which highlighted the uneven pace at which tariff reductions would be implemented. Indian exporters in many sectors are set to benefit immediately, while their UK counterparts will experience phased rate reductions.
EU officials settled on two new terms to introduce into its US trade deal, one outlining steps to be taken in the event of more threats against Greenland and another if lowered tariff rates aren’t introduced by the US within six months.
There was a blow to US president Donald Trump’s protectionist tariff policies though, which was challenged by the legislative branch of US government this week.
The House of Representatives first voted to reject a call to limit debate on tariffs within the chamber, then passed a measure reversing Trump’s tariffs on Canada.
The Republicans enjoy a slim majority in the House and both decisions saw members of Trump’s party vote against his trade policy, a growing indication of its unpopularity.
How’s stat? £248.3bn. That was the value of the UK’s goods trade deficit in 2025, according to ONS figures released yesterday. The gap between the amount of goods the UK imports, compared to exports, grew significantly last year – rising by £30.5bn to reach an all-time high.
Quote of the week: “It’s a great way of getting recognition for incredible teams and achievements, and a chance to get your name up in lights.”
That was Sean Ramsden, founder and CEO of last year’s International Trade Award MSME-Business of the Year winner Ramsden International, on why he “definitely recommends” traders enter this year.
Nominations for the 2026 International Trade Awards opened this week. Traders have seven categories that they can enter or nominate a peer to win.
Deadlines close on 20 March, with a ceremony announcing the winners taking place on 23 June at the House of Lords.
The week in customs: Traders will have the opportunity to share their views on the UK’s proposed Carbon Border Adjustment Mechanism, after draft secondary legislation on the tax was published earlier this week (10 February).
The government is launching a technical consultation on the plans, which you can submit views to by emailing cbampolicyteam@hmrc.gov.uk before 11:59pm on 24 March and using the subject line: “CBAM technical consultation response”.
There was also an announcement from HMRC on new vaping product duties, including a stamps scheme. The changes will affect those manufacturing vaping products, acting on behalf of overseas manufacturers or storing duty-suspended vape products.
What else we covered: This National Apprenticeships Week, the Chartered Institute demystified some of the rules and funding stipulations attached to the qualifications in the context of freight forwarding, a sector in which they’re a popular option for upskilling employees.
We also visited apprentices enrolled in our own courses at Fluke Precision and Woodland Group to see how the qualifications have supported them in their freight forwarding roles.
Members can explore this week’s regional Trade Digest, which focuses on news from the EU. This includes the bloc’s bid to place new curbs on foreign companies bidding for public contracts, plus Brussels’ ongoing reckoning with its place in the world amid weak economic growth and increasing defence threats.
True facts: The BBC delved into the rising number of abandoned commercial ships worldwide, as geopolitical instability and the rise of ‘shadow fleets’ to circumvent sanctions leads more operators to wash their hands of ships mid-journey.
The International Transport Workers' Federation (ITF) estimate that from just 20 abandoned ships in 2016, 2025’s figure was as high as 410.
An estimated 6,223 merchant seamen were directly affected, many stranded far from home with dwindling supplies.
